Nifty ends below 10,000-mark as Sebi order on shell firms hurts sentiment

All that happened in Tuesday's session

4:01 PM

Vinod Nair, Head of Research, Geojit Financial Services

 

Market faced the heat of selling pressure and finally ended below 10,000 as the Sebi's call to put restrictions on shell companies raised concern in investor’s mind. In the meantime, the metal stocks stole the show which outperformed the major indices and countered the slid to some extent.

 

4:00 PM

SEBI Order: VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services

 

The Sebi action against shell companies is part of the government's grand design to reset Indian economy. Demonetisation, GST, the crackdown on black money, and many more measures that will follow, will ultimately lead to a cleaner, healthier and faster growing economy. This is a highly desirable and welcome move.

3:58 PM

Sintex Plastics makes a tepid debut, closes in lower circuit of 5%. READ FULL REPORT HERE 

3:47 PM

Nifty Realty index leading sectoral loser 

Shares of real estate companies were under pressure with Nifty Realty index losing nearly 5% intraday. Housing Development and Infrastructure Limited (HDIL), Indiabulls Real Estate, DLF and Unitech from Nifty Realty index were down more than 5% each.

Source: NSE

3:43 PM

Sensex heatmap at close 

Source: BSE

3:40 PM

Adavance-decline ratio

The market breadth depicted weakness. There were more than three losers against every gainer on BSE. 1,982 shares declined and 603 shares rose. A total of 122 shares were unchanged.

3:39 PM

Broader markets underperform 

Broader indices underperformed with the BSE Midcap and the BSE Smallcap indices losing over 1% each. 

3:38 PM

Markets at close

The Sensex settled the day 259 points lower at 32,014, while the broader Nifty50 ended below its crucial 10,000-mark. The 50-share index quoted 9,978, down 78 points. 

3:28 PM

Suspected shell company Prakash Industries zooms 208% in 2017. CLICK HERE FOR DETAILS

3:25 PM

Century Textiles hits lifetime high

Century Textiles & Industries surged 5% to hit its all-time high of Rs 1291 after the company's net profit spurted 1761.3% to Rs 120.24 crore for the June quarter.

3:10 PM

European markets

European markets were trading lower. The pan-European STOXX 600 index was down 0.2%, while blue chips also fell 0.2%. Britain's FTSE 100 was also down 0.2%, as was Germany's DAX.

3:08 PM

Markets check

At 3:05 am, the Sensex was trading at 32,015, down 258 points, while the broader Nifty50 was ruling at 9,980, down 77 points. 

3:02 PM

Nifty PSU Bank index, which has risen nearly 23% this year, lost as much as 2.8% with Bank of India and Punjab National Bank leading the fall. Nifty PVT Bank index was down 1.2%. 

2:58 PM

Nifty Bank underperforms Nifty50

 

Nifty Bank slips over 1%, led by losses in HDFC Bank, IndusInd Bank, Axis Bank and Kotak Bank

2:48 PM

Nifty Metal top sectoral gainer led by gains in Vedanta, Hindalco and Tata Steel

Source: NSE

2:14 PM

JM Financial on Hindalco

 

Cost competitiveness in Hindalco's India operations driven by higher coal security, quick ramp–up of new capacities and stable margins at Novelis with higher proportion of automotive products in the mix continues to drive an upward earnings trajectory for the consolidated entity. Consistent earnings delivery, deleveraging of Balance Sheet via FCF generation and stable aluminium prices remain triggers for further re-rating. 

 

We ascribe a multiple of 6.5x FY19 EV/EBITDA to Indian aluminium business to arrive at SOTP (sum of the parts) fair value of Rs 300 per share. Maintain BUY.

1:54 PM

Top Sensex gainers and losers in noon deals 

Source: BSE

1:19 PM

Bajaj Auto rallied over 3% to Rs 2988 after the country’s fourth biggest two-wheeler maker announced a partnership with UK’s Triumph Motorcycles to jointly make mid-capacity motorcycles for Indian and global markets.

 

"We hope to bring to bear upon global markets the individual strengths of the partners including brand position and perception, design and development technology, quality and cost competitiveness and worldwide distribution," Bajaj Auto said in statement.

1:08 PM

Markets check

At 1:00 pm, the Sensex was trading at 32,091, down 181 points, while the broader Nifty50 was ruling at 10,004, down 53 points. 

12:49 PM

Sebi bans trade in suspected shell companies

 

Market regulator Securities and Exchange Board of India (Sebi) has directed stock exchanges to initiate action against 331 firms that it suspects are shell companies and are listed on the bourses. HERE IS THE FULL LIST

11:39 AM

Block deal

 

Bharti Infratel was the top Nifty loser and dipped over 5% after more than 3% of the total equity of telecom services provider changed hands in multiple block deals. CLICK HERE TO READ MORE

11:13 AM

Should you opt for Bharat 22 ETF?

 

Read here what Mayuresh Joshi of Angel Broking has to advise. 

10:47 AM

New kid on the block 

 

Sintex Plastics Technology hits upper circuit of 5% on debut. READ MORE 

10:30 AM

Volatility index

India VIX rose over 6% to its one-month high of 13-mark. 

Source: NSE

10:07 AM

Broader markets underperform 

The BSE Midcap and the BSE Smallcap indices shed morning gains to slip 0.8% each. 

10:04 AM

Markets check

Benchmark indices wiped off early gains. At 10:00 am, the Sensex was trading at 32,111, down 162 points, while the broader Nifty50 was ruling at 10,007, down 42 points.  

9:52 AM

Irdai directs LIC to reduce stakes in Larsen & Toubro, ITC to 15% by December 2018. CLICK HERE TO READ FULL REPORT 

 

L&T and ITC were trading flat in today's trade. 

 

9:45 AM

Hindalco hits 52-week high

 

Hindalco has gained 7% to Rs 245, also its 52-week high on BSE in early morning trade, after its overseas subsidiary, Novelis Inc reported a four-fold jump in net income at $101 million for the first quarter of FY18 (Q1FY18).  The company had posted net income of $24 million in the corresponding period of previous year. CLICK HERE FOR FULL REPORT

9:33 AM

Sectoral trend: Banking stocks trade in red

Source: NSE

9:30 AM

EDELWEISS RESEARCH ON TATA STEEL

 

We remain upbeat on the stock as: 1) consolidated EBITDA/t is likely to sustain at Rs 8,000-8,500 on higher share of domestic shipments and improved profitability in TSE post restructuring; 2) better probability of resolution of pension liabilities; and 3) Rs 40-45bn free cash flow accretion over FY18-19. 

 

Factoring in Q1FY18 performance, we revise up FY18/19E EBITDA by 9%/4%. Maintain ‘BUY’ with revised SoTP-based TP of Rs 720 (Rs 650 earlier), implying an exit multiple of 6.5x FY19E EBITDA — at a discount to peers’ 7.0x average